RCom insolvency official files resolution plan with NCLT

RCom insolvency official files resolution plan with NCLT thumbnail
A file photo of Anil Ambani. (Photo:Mint) 2 min read . Updated: 07 Mar 2020, 04:27 PM IST Leroy Leo The CoC had unanimously approved resolution plans provided by Reliance Jio Infcomm Ltd and UV Asset Reconstruction CoJio has offered around ₹4,700 crore to buy tower and fiber assets of RCom’s subsidiary Reliance Infratel Ltd…

A file photo of Anil Ambani. (Photo:Mint)

2 min read

. Updated: 07 Mar 2020, 04:27 PM IST

Leroy Leo

The CoC had unanimously approved resolution plans provided by Reliance Jio Infcomm Ltd and UV Asset Reconstruction CoJio has offered around ₹4,700 crore to buy tower and fiber assets of RCom’s subsidiary Reliance Infratel Ltd

NEW DELHI: The insolvency resolution professional of Reliance Communications Ltd on Friday filed a resolution plan for the company with the Mumbai bench of National Company Law Tribunal, the erstwhile telecom firm said.

“…the undersigned hereby informs that Resolution Professional has duly filed the Resolution Plan as approved by the CoC (Committee of Creditors) of each of the aforesaid companies with the Hon’ble National Company Law Tribunal, Mumbai Bench on March 6, 2020 in accordance with Section 30(6) of the Insolvency and Bankruptcy Code, 2016,” Reliance Communications (RCom) told exchanges in a filing on Saturday.
Earlier this week, the CoC had unanimously approved the resolution plans provided by Reliance Jio Infcomm Ltd and UV Asset Reconstruction Company (UVARC) for Reliance Communications Ltd, two banking sources had told Mint.
Jio has offered around ₹4,700 crore to buy tower and fiber assets of RCom’s subsidiary Reliance Infratel Ltd, while UVARC has bid ₹14,000 crore for spectrum, real estate assets as well as the enterprise and data center businesses, held in Reliance Communications Ltd and Reliance Telecom Ltd, the sources had said.
“In addition, the lenders will claw back the priority payments of around ₹4,300 crore made to Chinese and Indian lenders,” one of the sources said, adding that while ₹3,000 crore will be clawed back from Indian lenders, another ₹1,300 crore will come from Chinese banks.
A clawback provision is one where a liquidator can seek to recover, or claw back, payments made to a creditor by the company or void the transaction.
However, despite the provision, loans of Chinese lenders will reduce by nearly 65% to around ₹4,000 crores from about ₹12,000 crores, the source said.
The 38 lenders of RComm will recover ₹23,000 crore, which is more than 70% of their outstanding of ₹33,000 crore of secured debt.

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